BHP - Credit Suisse rates the stock as Neutral
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The process of offloading US shale is still on track, BHP noted at a conference yesterday, while insisting conventional oil still has a place in the company's portfolio. Higher energy costs have lifted medium term costs for met coal and copper production.
BHP is still targeting a 20% return on capital employed by 2022, the broker notes, using FY17 realised commodity prices. A raft of opportunities in the portfolio are clear but execution will be the ultimate value driver, the broker suggests. Neutral and $31 target retained.
Target price is $31.00.Current Price is $34.01. Difference: ($3.01) - (brackets indicate current price is over target). If BHP meets the Credit Suisse target it will return approximately -10% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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